Just to clarify
There is quite a bit of misinformation here.
1) It *does* stream, plus you can mark playlists for offline play. At this point it will ensure the playlist is downloaded to the phone.
2) It is very different to Last.fm. Last.fm is a music recommendation engine (a very good one IMO) but follows a 'radio' model. You can't select which song you want to hear and you can't even seek through the current song. Consequently it is free.
3) You can't keep the downloaded songs, so the £120 you are paying gets you unlimited access to a huge amount of music, but once you stop paying you lose it. Essentially you're paying for a perfect try-before-you-buy system. As a result, I don't pay, but I do like the desktop client to evaluate potential album purchases.
4) They are adding high-def streams for paying customers, but this might take a while.
Thanks, just clearing some things up.